To learn more about how your data is used by us when you use the website, please read our Privacy Policy. We use cookies to deliver our services and to ensure that we give you the best experience on our website. For details on our use of cookies, please go to the Cookie Policy

Akzo Nobel to expand powder coatings activities in Egypt

Arnhem, The Netherlands, October 20, 2005  Akzo Nobel has acquired a controlling 60 percent share in Egypts leading powder coatings manufacturer, Coatech For Chemical Industries SAE. The new joint venture company will be renamed Akzo Nobel Powder Coatings SAE and will operate from Coatechs existing facilities near Cairo.

Employing 130 people, Coatech was established in 1992 and is the principal supplier in Egypts powder coatings market.

As the worlds largest coatings manufacturer we are constantly striving to strengthen our leading status in the industry and expand our global reach, said Akzo Nobel CEO Hans Wijers, who is also the companys Board Member responsible for Coatings.

This acquisition is fully in line with our strategic growth plans and will result in an expansion of our powder coatings activities in the Middle East, which is an important region in terms of powder coatings consumption. Acquiring access to the Egypt market will also provide us with a supply position from which we can further develop the surrounding markets.

Added Rob Molenaar, General Manager of Akzo Nobels Powder Coatings business unit: This joint venture gives us the sort of local presence in the Middle East which has so far been lacking in our worldwide activities. The combination of our cutting-edge technology and extensive experience in powder coatings, together with Coatechs established reputation for excellence in quality and service, creates a formidable partnership and one which we are certain will benefit customers throughout the region.

Hanni Radwan  who established Coatech with Dr Mohamed Radwan  will be General Manager of the new joint venture. Egypt is one of the largest powder coatings markets in the Middle East and in recent years, annual growth in powder consumption has been around ten percent, he said. The most important end-user sectors are the domestic appliance and air conditioner markets, with demand for architectural metal finishing also starting to increase significantly.

Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated revenues for 2004 totaled EUR 12.7 billion. The Company currently employs some 62,000 people in more than 80 countries. The financial results for 2005 will be published on February 7, 2006.

Safe Harbor Statement* This press release may contain statements which address such key issues as Akzo Nobels growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements, including but not limited to the Outlook, should be carefully considered and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. These factors also include changes in regulations or interpretations related to the implementation and reporting under IFRS, decisions to apply a different option of presentation permitted by IFRS, and various other factors related to the implementation of IFRS, including the implementation of IAS 32 and 39 for financial instruments. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission, a copy of which can be found on the Companys website www.akzonobel.com.